Bankrupt AHM Wins $5.5M Waterfield Settlement

Law360, New York (November 11, 2010, 3:12 PM EST) -- A bankruptcy judge has approved a settlement that gives American Home Mortgage Holdings Inc. just $5.5 million from a $55 million escrow account tied to the bankrupt mortgage company's 2006 acquisition of rival Waterfield Financial Corp.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware signed off on the settlement Wednesday, ordering the escrow agent, J.P. Morgan Chase Bank NA, to wire the $5.5 million to AHM immediately.

The remainder of the escrow account — estimated to be worth a total...